Marvel Rivals Canceled: NetEase Founder Nearly Scrapped Game Over IP Concerns

NetEase's Marvel Rivals, a resounding success with ten million players in its first three days, has generated millions for the developer. However, a new Bloomberg report reveals that NetEase CEO William Ding nearly canceled the game due to reservations about using licensed IP.

This report highlights NetEase's current strategic shift: Ding is streamlining operations, reducing staff, closing studios, and scaling back overseas investments. The aim is to create a more focused portfolio to counter recent growth stagnation and compete with industry giants Tencent and MiHoYo.

This restructuring almost resulted in the cancellation of Marvel Rivals. Sources claim Ding initially resisted the cost of licensing Marvel characters, advocating for original character designs. This near-cancellation reportedly cost NetEase millions, yet the game launched to significant success.

The downsizing continues. Recent layoffs at the Marvel Rivals Seattle team, attributed to "organizational reasons," and the cessation of investment in overseas projects (previously including significant investment in studios like Bungie, Devolver Digital, and Blizzard Entertainment) underscore this trend. The report suggests Ding prioritizes projects with the potential to generate hundreds of millions annually, although a NetEase spokesperson denied the existence of arbitrary revenue targets for new games.

Bloomberg's report also paints a picture of internal challenges stemming from Ding's leadership style. Sources describe him as decisive yet volatile, prone to rapid decision-making and frequent changes of mind. Allegations of pressure to work excessive hours, the appointment of recent graduates to senior leadership positions, and the cancellation of numerous projects—potentially leading to a complete absence of new Chinese game releases next year—further complicate the internal picture.

NetEase's retreat from game investments coincides with ongoing instability in the global games industry, particularly in Western markets. Recent years have witnessed widespread layoffs, cancellations, and studio closures, alongside the underperformance of several high-profile, expensive games.